source Total Telecom/By Mary Lennighan
Value-added services will enable telcos to take bigger share of M2M revenues.
Growth in the number of mobile machine-to-machine (M2M) connections will drive a sevenfold increase in revenue from associated value-added services over the next few years, according to new research.
The market for cellular M2M VAS will be worth $10 billion by 2017, up from $1.5 billion last year, IHS predicts. Meanwhile, cellular M2M connections will grow to 374.9 million by the same date from 91.4 million in 2011.
These value-added services will support the deployment and management of mobile M2M connections, particularly as the market becomes increasingly complex.
“The cost and complexity of developing, deploying and operating cellular M2M applications is daunting, leading increasing numbers of companies to outsource cellular M2M application development, deployment and in many cases operation, to VAS providers,” noted Sam Lucero, senior principal analyst for M2M & Internet of things at IHS.
In addition to helping manage the complexity of M2M, value-added services enable companies to focus on their core businesses, rather than having to manage the integration of mobile connectivity into new or existing applications, IHS said.
In addition, launching VAS offerings will help telecoms operators gain a larger share of revenue from the M2M space.
The mobile VAS sector includes both professional and managed services, IHS says. The revenue opportunity is greater with the latter.
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